Apartment Investment and Management (AIV) 8 May 202020 Q1 Earnings call transcript

Good day, and welcome to the Aimco First Quarter 2020 Earnings Conference Call and Webcast. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Lisa Cohn. Please go ahead, ma'am.

day. good and you, Thank

uncertainties, During may this based XXXX we are be SEC risks forward-looking These be today. which found discussed in materially call, management's judgment, from the our and certain on to to Actual are statements description including of statements can results make filings. subject conference a differ projections expectations. may related what

to defined the the is such also comparable as financial AFFO and discuss are Aimco's These FFO. part release will in reconciled We measures on measures, are most that GAAP the full certain and information website. published non-GAAP supplemental earnings of

Executive Prepared question-and-answer remarks. management Beldin, are our Officer. available Vice Vice Chairman of of remarks Redevelopment; our our Considine, during be Other our Property Executive members will Terry our President Kimmel, come which today and in-charge Chief CEO; our Operations; Financial President, present and from prepared in-charge Paul will follow Keith of session, and Powell, Wes

will call I to Terry? now Terry Considine. the turn

you, all observation the know, about decades responded. and decades your happen. how Aimco happening. quarter My you there last thanks as when year nothing profitability. changes all on then where record report the my of few that Aimco changed. the The world time effectiveness are you the rapid and it will In to are use began first seems were tell with weeks business time colleagues decades weeks And April. of and in thought of went, Aimco. to March for on I will month and interest you call goes record and this there the Famous Thank Lisa, when the happen

it work our And and we give why expenses. reasons collaboration flexibility by importance development. Aimco to and point. selection While less intentional for to our long-dated we emphasizes our we in and times redevelopment customer and control so and price prefer why helped are That's designed to there why customer such ground-up why portfolio mind. That's responsibility. That's nonrecourse. market hard why diversified property that's of is initiative, personal primarily that short-cycle That's plenty hard flexible satisfaction with concern, and culture so is leverage

with the As approached, priority. committee to service fulfill teams work of on-site free and our dozens and -- continuing met safety with testing COVID-XX the crisis work so flexibility, a made the stay usual We who safe, did. we to from while it We how of to made redesign virus teammates Aimco all daily across felt undertook health and of We any regarding costs to consistent our related that dozen policies a pay team pay, keep treatment. without home our all at clear, our requests. or any was of and teammate apartments cross-functional to formed because unsafe that to lease we penalty

layoffs Importantly, to intact we team cuts. keep without or committed pay our

flow video written, team. to and transparency increased continued regular a and We of the communications oral with and reports steady entire even

the plan hard supervisors personal special interactions workers by by limiting service to the with help joined where our worked crisis, at infection appropriate, needs and office to paused sheltering cases We adjustment support and safer her reducing cleaning his on been support how of work provided properties thousands our example, find meet structured few established and increasing for service coronavirus. positive we opportunities home, a few make to to us shared Dozens to led center teams. of whose who for about to for to team each help a Wi-Fi, hold groceries. the to those conversations payment ideas residents even with financial roommate job construction with and of for property We searches, offering the focus enhanced residents teams. infection money errands, these in-person or plans ways reported have of relative tips in advice, out redeployed Customer and with searched site neighbors and

and from of We home. utilized our of intelligence knew increase down drew adapt million and artificial cash at of the on year distancing start million million reduced of importance we soon spending credit our and X/X, billion so credit or building almost hand, million with limited about credit line the and new to X net previous on and on today and conditions to over the sheltering investment $XXX will pending years. in reduced placed proceeds capital technology social closed property capital $XXX at of the loans, loan spending to or next We $X.X $XXX of the in liquidity $XXX $XXX or million by cash that and loan added maturities cash a term have

busy engaged, are X kept who but virtual as March for directors board April, specific fully including calls actually we held delivered of the candidates later. same weeks until Directors end We those Board X management individual In Board not X numerous for fully our made informed the from X assistance elected meetings. weeks, on, and X and of reports,

our some same-store but month for the April customer was satisfaction, closed, in by continue, average rents, occupancy. measured somewhat expense rate while not seems as So to easing challenges that by are in it I'm offset rental growth, daily control, date. success fully books clear property good another grateful The

Even for These numbers. look and Great shut what the some economy home hospitals, of students and of and we to are are their So stable unsettled rivals the busy the rest financially the forward? now meds, than Depression. newly damage plenty are universities eds with the when at Millions COVID-XX exceeds having we in usually We see much challenges. are do and The economy down respects treating shut More unemployed. astonishing of hospitals services. see down. of X/X stressed

will that the increasing if rule set responsibility. new be importance be the matter in lease-ups. for and cautious the It will worries in customers be the A especially is leasing and a competitive, collected of contracts law, very new lot the and rents business ordinary to course. me in the will of apartment cannot disregard sanctity market of So wildcard personal our

to standards continue to income, to what more For we will but to But treat net customer plus Their long do customers the will lower. each operating selection. We'll be we'll projects. perhaps annual are individually complete satisfy work by and rents easing cycle initial our our We we'll X end, earn occupancy, in some not expect increase lower for in income lease-ups or arduous liquidity continue $X.XX respect with and abundant reallocate advantage rights for time lease-ups dynamism income leverage outright where joint property capital to with and and, comparative We'll over and operations. economic benefit both from in proceeds from to the properties ventures. with properties, to or can minus from We'll $XX sales million states adjust our we our property sale garner a markets of share. to owed.

We what about sense housing months minus, invest expect or mission continue property was plus be provide for say, to others. a respecting motivated to of We'll it will pricing professionals in X%. ago them team, with X as our

team effectiveness and in a And for on collaboration, of final thank murky, moment your can to makes mission Aimco like be once I'd demonstrated provide Aimco that entire your team the take for and the the commitment. future to courage and personal The sense our caring, of excellent April to me your present is always homes but responsibility thought. note, discouraging sense of results customers, operations optimistic. the of One culture again again

Kimmel, Head Keith to call the turn of I'll that, With Operations. Keith? Property

Terry. Thanks,

residents our had First, equally to I'd like to challenging a to efforts, Due quarter entire team our thank serving your during first and your an for times. solid April. commitment solid we

in and customer during the on good even satisfaction, that customer out We quarter, challenging We This customers line of the ones. customer and more again selection Based X.X translated leading same critical continue to solid times exceptional well ever, approach to stars. turnover satisfaction Satisfied serves improvement XX%, playbook. first point basis to XX,XXX us longer, year-over-year. growth. X execute on during our with XXX is lowest focus top operating us live was surveys

occupancy and rates rates X.X%, record XXXX. than was points XX.X%, expense Rates XX with XX lease were than basis debt strong at up daily X.X%, better X.X%, XX Average renewal Bad basis new basis the points XXXX. up was rates points another quarter. up blended Aimco better lease for

were X.X% to revenues this down last were turn Total personnel Controllable points fewer and controllable expenses down and up were resulted costs. expenses X.X% marketing insurance. lower with over somewhat expenses leading in increased operating basis of decreases taxes as by in XX year. offset reduced efficiencies All operating effectiveness and expense spend, the improved

year. XXX margins basis quarter net operating first grew same-store quarter XX%, of first last result, over a were improvement the a point X% As and income

April. to turning Now

place. Our they above in take frontline residents of our service teams have beyond to and gone while care sheltered

For elderly or groceries delivered more pace on-site to as new at a and initially norm innovation. responded season. leasing pricing with responders, leasing even for remained basis points, to new teams disabled. yet to become peak that than mid-March basis teams solid drop This our tours comfortable enter year. cleaned daily higher low of rates Today, solid, last X.X%, points and customers as due than with occupancy reached translated X,XXX April April. is more first our basis packages, into leasing saw basis XX XX April the efforts XX.X%. up COVID. Thanks month, a and example, by provided improvement new And lease those turnover they've Average up with and renewals recovering than we efforts, year, These We flexibility homes a XX leasing XXXX points. XX.X%, virtual bought are those up X% our live prospects. over was blended last lease lower XX rates point The

XX% Boulder, XX on Anschutz to is fewer on available Colorado, to to our At collected our now available more units in XX% once the units offset the than X% of hospital current -- the or summer. XX In on was disruptions expect Fremont -- have month. deposits as underwriting, of XXX leased and delivered residents points leasing the FICO we to deliveries billings occupied with rents Bad debt and lease-up the An his lease, Medical have furloughs already XXXX. we lease. communities, than rose accrued leaving the guarantor. and We Campus, be April COVID remaining security Parc in for another above Mosaic accelerate and to XXX we our first completed fade. the based about the residential and available XXX approximately yet and additional remain not for basis homes optimistic location, this delivered At units scores

has with summer, velocity strong confidence attractive in seen the lease the Redwood April us We've next underwriting. of that and XXX apartment for April. XX Illinois, product, feel occupied. we over Eldridge excess planned in Townhomes Elmhurst, gives In of is this remaining in for us to June. short, rents This XX first leaves units with deliveries Leahy's And XX leased the City, X building good for XX% over townhome In units. about homes

While in and I'm been mind, we times to water be choppy ahead, outstanding anticipate will challenges more and team's like built our for results. operations in have this deliver there confident our ability

that, the And of President turn our with I'll Executive to Redevelopment. Vice over Wes Powell, call Wes?

Thanks, Keith.

long redevelopment business small are upgrade uncertain to that allows of are react has Aimco became highly This renovated amenity over its the homes become can to and case area upgrades pause has One all for liquidity the development, As times over days. able preference phased and approach plan batches. quickly was common is Terry and proves are past short-cycle mentioned, short-cycle when When valued, especially XX difficult. the in do profitable activities. in redevelopments often where us redevelopment apartment example the apparent, times Aimco is normal times property crisis and current the Aimco as also and been and considered

year, Together been capital XX% we start $XXX that or had million. to expected XXXX with slated spending by this other later projects reduced

published million continuing in complete outside X.X% Campus, cost long currently the expected Leahy most from cycle are funding. of X readily XXX of equal Their just Anschutz We and this projects, of and the additional recently Eldridge Chicago, cycle the and Aimco's GAV require abundant just Medical Redwood long total City, of amount together year on Fremont completed be underway. development X located Aimco's Townhomes $XX X to our projects funded liquidity. under $XXX later to redevelopment an to million, are

XXX assuming lifted long projects year, addition, scheduled completion early In we other of the cycle ban have a is summer. for the X XXXX. is that current In expected by in Cambridge, early property are on completion unit construction next

of funded. $XXX late be We remaining exposure to approximately next estimates. with the complete million, in major project financial line Flamingo's capped for to Beach, Our construction delivery renovation this the to to North be Tower with approximately previous In slated cost $XX project year. is Miami million is

of So year $XX long in all to projects. summary, $XXX this through to approximately year and invest million X complete remainder we the plan cycle next million

are When contribute NOI. stabilized, additional plus of to these X or million expected communities $XX minus

uncertain widened. times, will undoubtedly and long that housing over these has But the team remain Given possible we strong robust customer demand high-quality submarkets Keith's world-class the confident in by located range remain of outcomes run. for managed

Finally, I positive few would results my to to quick dedication, action for offer thanks months. teammates like Aimco and past over special these their

I call Paul? Beldin, our the over Chief like turn Officer. would to Paul now to Financial

recovery for these off pandemic financial and AFFO increase Today, capital In cover and decisively results, liquidity, same-store included and NOI to and X% downturn uncertain. XX% first X% its reduce made sheet, FFO growth. response assets future which scrub writing our Thank economic topics to Wes. will the spending you, acted the Aimco the I growth, downturn, balance quarter growth

few availability $XXX of increase the liquidity, under facility million lock the rate debt loans long close balance revolving Aimco. well property in Today, with XX balance debt safe on is its primarily proceeds hand, the weeks. is Aimco Aimco's like times is strong to as of on laddered, by comprised dated, summing in leverage cash Starting sheet billion sheet. property next liquid, next enjoys amortizing and additional designed excess and $X will an closing liquidity and nonrecourse highly today. that It days. is in-process This credit our for

loans. closed The the property $XXX of rate of $XXX maturities property placing maturities $XXX new all through of resulting is debt We've XX% in generating million XXXX debt, XXXX average X years. the for of XXXX borrowings or and total, maturities new $XXX of million. Aimco million incremental annual locked address property million next proceeds approximately In

rate million closed, Aimco's a weighted costs lowering and by For rate overall points. borrowing weighted average locked is loans of the average term or interest $XXX years X.X the is basis X X.X%,

as to sheet While levels. provides leverage, liquidity, EBITDA, measured Aimco's balance by abundant targeted flexibility and remains above leverage

We sheet the sales. the levels leverage targeted balance property properties safety lease-up with but construction X of to are Aimco's reduce through the to comfortable expect under of and

Given Aimco's liquidity, have flexibility. we abundant of plenty

the We at price of equal to located the sale last pick market at expect reopens. gross an this the apartment community property closed up its of Annandale, Earlier transaction in year. end as million, sales to Aimco value Virginia, of a week, on asset $XX.X

for Next, partnership with sheet, the its as I including potential mentioned previously, to Aimco Parkmerced. scrubbed impairment, loan balance Parkmerced. Starting reviewing all owning significant assets its

and reviewed and are remedies we loan by all $XXX,XXX the commercial During not, The our results note, loan we the commissions. its If accounting expect loan. our of equal has our well collect broker on Aimco straight-line operating tenants made Aimco amounts provided agreements. first flow also secured quarter, reflecting in property rents cash and for deferred the viability XX% underwriting. the assets related to to received required all borrower payments, of due on its

twin rent. and hand, to million wrote the and commissions at COVID-XX to Aimco uses. amounts economic $XXX,XXX and retail, of tenants fitness commercial off related $X.X about million impacts, rent $X.X monthly associated paying with off of upon tenants the leases straight-line restaurant deferred of recession The Based with written are broker

also residential from than assessment bad of based consider Aimco or withhold be were the Aimco's scores. month only Going after on evaluated the X% basis. been using methodology. the more the Previously, bad Using have collectibility as revised, residential due. based increase result Aimco the $XXX,XXX tenants will new estimate estimates cash choose a methodology creditworthy payments. accounted forward, residents on April balances past from days an was their of methodology, $XXX,XXX rent revenue on tenants revenue, new would of second for FICO these debt quarter, balances such residential collectibility XX guarantors third-party creditworthiness of our the who former approximately what its of to end and in effective to debt of

the up the equal the of Now of expenses $X.XX beginning first midpoint Better-than-expected turning the operating G&A per and results. financial AFFO results, year and provided share same-store guidance to at quarter lower of to year-over-year. X% our previously the This seller million COVID-XX-related $X.XX. related prepayment straight-line and note adjustments. finance rents and by charges costs by outperform outperformance a to expectations discussed $XXX,XXX was broker commission of of $X.X combined of offset was to the deferred

$X.XX guidance per of of FFO up was ahead share of $X.XX XX% year-over-year. the midpoint and

for XXXX. in of per Directors ended XX, of quarterly dividend Lastly, cash March a paid share dividends the quarter declared XXXX, the X% $X.XX Aimco Board up over the regular quarterly

I'll you questions. With turn for that, to it first [Operator Rocco, will call question. up open Instructions]. the we the now for over

first Today's from comes Instructions]. BMO. question with John [Operator Kim

opening you rates your going occupancy of you still in if mentioned had remarks, in Terry, retention forward, easing high April. very an

or maybe quantify provide think timing the you will you occupancy can on So when bottom?

because occupancy. just It's know. John, meeting I to it's from That's hard know, And gets market with the that it's down go sense or discussing of tenants the a the hard a X tell with property is street worked our it key started here. every I to aspiration. you, But today future my in is competing with -- should road. up someone that out where our across can

-- Sometimes very rent. free free they're substantial offering month

Keith, that? be not this will economy exact going that depend will And so How our you quality to add interplay, the give and of hopeful this. would but to prove you're I'm know. just on I execution. bottom, but running the the guidance the We're to that don't

straight a one in forward-looking would say, the encouragement as our down. listen as week I point on indicator John, -- April, share we a date for we saw point, the That we the I was would first have by in is dictated that the past starting March, that week work that maybe traffic. next sort end just that surpassed that Terry, leasing -- when XX. last well. week the kind over activity, leasing think But what weeks, week, fell COVID you Northern from sheltering of point. of maybe pace is things And the weeks, this XX% increasing of it we XX as answered use couple and just falling X of California our of were way the to of is its property I start seen place where March of we is week is we that to over March about over off

levels, not is occupancies are feels as starting existing having while and down things reemerge. we're back to But So to as demand. as hit if rebuild facts where at as around our peak it forward, bottom are that the I can see say I'd of look what there's may it some we course, far have I And up.

Does point. John? that Excellent work,

Yes. I agree with that.

of So still billion, has or to million prior you your selling are part which $XXX guidance to committed is that been $X withdrawn?

No.

number. go look and that at Let's back

our the is First EBITDA, a circular of which reduced. there's assumed capital effect. sell now all, spending, of the And you million, is because $XXX sort which properties, you level sell certainly of when plan, in

So $XXX million for of savings would a $XXX just $XXX I say, brings it million down to something say, million. under let's number.

Lisa by if week, just at look that almost you reduced we did Secondly, XX%. debt this what

contribution the you of there. you're from come If lease-ups, in going EBITDA think to adding that's

at got XX%. We're liquidity. So We LTV. at our a urgency. of going There's don't XX% way we're work LTV, we've to a I sense -- think that plenty that our is think at feel we're We of great nothing target and through comfortably. low

And doesn't distressed so that sales. merit difference

what we course think have we'll but we market see think the sell progress of that the year-end, fair are that at we I the what and yet I whether to we'll values up, where are which so transaction year, -- at And exactly opportunities make the don't is know. steady over opens rate as at

next question today And KeyBanc. with Wurschmidt from Austin our comes

on off, you there transaction. transaction, that. So continued some today, elements isn't provide I guys understanding so thank sense that But clear is still my wanted of to have for first additional touch you of the on And to know detail a Parkmerced. I

cash could contractual the And by terms you if borrower? what helpful in and -- it terms income you one payment adjustment XXXX, cash you've in what between curious is would interest or be for your prior of or GAAP make the us, tell in an collection in AFFO second, do and AFFO adjustment then So assumed guidance? clarify, of

in there depend the receipts do on of because people. cash accrued window rate is, a in subordinated in position position operating I'll the of be is economics. which there if confident, of in a participate were on us fine. residential take development the will of leave experienced And to a attractive time that control provides or of it default paid have timing period to is is be a accounting, keep The on this of the Francisco. I The mind liquefied accomplished. million would that to over just But that rent borrower We Austin, current development me They're the Differences San see that we largest Paul. let thing or biggest So success and the to we opportunity second The opportunity. They'll has to bought monetized very very either the an attractive $XXX portfolio. inherit the equity. borrower long that equity return. us, by -- to one that an history are to think, some

is understand the The the owner, of that perfectly that economics intent a that's there how where our their creditor. details Today, some we quite payment not our really like our business business, and we're not expectation. not in their become operate are high. and So We circumstances are they confidence that's but ours.

accounting? Paul, a that business then what own pretty good the add an any we'll deal that we'll paid be on would Our XX% after say, be but ratably you option the we'll will is and that over of X well, it have X over at paid back be years because years in cash. paid next -- balance nominal unpaid And forward accrued or the expectation and a price. the will was look going to for

accounting covered flow. it's as only the you available the from in but paid of Terry, rationale of under because transaction the it perspective, I is cash note, also a terms well out think not cash

amount the over we actions deferred so all our in are. ultimately for first And wrote sure of see, of in and contractual million and based accrued just is of can as that's the collectibility, you the anything provisions our accrued loan our assets for evaluated like upon And assets very off be where collected. we're that costs, recognize expect $X quarter, sheet don't balance proactive making that on don't any will fully we we

So of the on do dependent then the guess, contractual what and variable income. between difference in cash? interest collectibility, the amount is then upon the to you're for level of you adjustment GAAP I cash that -- amount an flow and collecting But AFFO clarification the make

do We profitability metric, AFFO, treat not but metric. as We a as a not. liquidity

other are as it's exceptions, And paid so accrued there in a see businesses, too, subsequent on interest that's of accrued in loan lots you'll and months. or whether construction AR

profitability a a liquidity mean, as I metric. as look AFFO at metric. we So

that absolutely, in we that correct sources we on predictable. that. of so its are each XX% think is our we But year And our for yes, that earning of timing would and profitability, the payment uses note of cash, in

the made. helpful That's helpful. be number cash it get the to adjustments that any kind for And is can of

was renewal... maybe for you provide question Next some could wondering Keith. I if

executing They're -- When on we it, their XX% back our other business to me this underwriting. Austin, thing. plan one at underwrote let we go of correct expected. is exactly add -- what just

the that there get assure let the What's that well, would just was We out What would Keith. that they're interrupt possibility XX% start We you but say, we our track we're fine. our off. what somehow the -- way, to your to anticipated But might Parkmerced knew consistent sorry is I'm a be collecting would to was underwriting just along is to to would -- that, at that the that X% from on likely happening us it? going that as be means me this question with be almost and you something interest. implode was start we see happen. of right answer. from be will that knew it Now

No.

some sense you've be to May, late So be I new any that a June what just renewal lease appreciated. July? for and information rate rate the detail up for ops May was lease guess, of of renewals on trying and following were also that I get may got for, would of And signed then kind

Thanks, Austin.

at go and if April we Xs, the June renewals Xs. to May our low forward So for what somewhere see X%, going you is maybe in to going be

And those. out with so lot of still but us. acceptance of those, we're already front in of there's seeing good a work We're

of want I wouldn't that's So before that's at but to -- we're ahead our get expectation. ourselves, of what and sort

into you the As of that were those the April April, happened those -- XX rates, actually flat. in getting month new transacted XX% of that rates in at lease Those look actually of -- to transacted April. about points that basis them actually as prior pre-leases

about in those in the about between leases renewals X% X% So new two and April, or Xs.

for then at of this any for May And leases type signed that point? anything you've

little early. on some see pressure to a continue rate, we Listen, but it's

the door leasing so And pace. of just front sharing as we're to we're starting with was see -- reemergence John, I

And things ahead there get ourselves, wouldn't but to working we're of want are certainly so there. I through

Joseph Citi. question with next from comes Our Nicholas

Bilerman Michael here It's Nick. with

on I Parkmerced. So to the just want come back

So how of you yielding that interest, $XX.X you much should So $X.XXX cash note interest million million, be would so income did received. have which earn? $XXX on XX% million

cash So that full as interest not? did you amount in the or quarter receive

Michael, this Thank question. your you for Paul. is

$XXX,XXX we the our in of property, line the based and rent of we underwriting. which collected upon that's release, disclosed with in operations As cash were largely our

of $XXX income. interest million. That was $X from -- the almost loan paid should you have million

the to because upon cash. exception that us available I should loan pay take based

what upon generated. The did. exactly should loan stated rate have $X.X the accrued us million, so paid the And cash being been based which it flows interest would have paid

Right.

loan I you you profitability. that's balance. know So just don't on carried -- to your it if

eventually debtor outstanding. just defaults, the equity balance you if -- have larger just a You

It all along depends the point borrower the or on collectibility if if to and on what line collectability. happens matures the -- loan It were the all any depends and understanding default.

$XXX accrued There's that. us for that the million applying exactly liquidity equity right of you're be converting and would to to about interest. available junior to So

going but you of were was it, to recognize I if happen, back step we guess I none does how and pretty going us from an knew into cycle. economic in what -- late

to that You which peak in development. massive loan, future, large is pricing, now scale rated preferred peak redevelopment interest This is a generally development, less versus which you said leverage just a the made pick deleverage certain. you've high

So all and a from how tie forward? does going strategy perspective that comfort

a is a diversified it's think portfolio assets upside more across invest the significant than to average terrific in I opportunity a have apartments. in that

rent track." We and you going have control that said window development of of in confidence going you going X have that's you if any growth a to you -- have fine, monetized. I as handle in an to an at the for buy the opportunity, -- XX% believe a Michael, paid the up we been as on you're November, had last what's you're look would be of were been and portfolio And unlevered and that's of would level that rate okay? two, you'd markets improves opportunity and future might would X%, with -- that's or we're today, think our this assets -- the the cap NOI If and So happen. to high an this one apartment have might said, signing San to on Francisco, where think if IRR are rate there's probably, extraordinary the assets get "Okay, have property have

a think trade. that's good I

to law down Does at your that mentioned Terry, that may look the political you mean it beginning. career resume if road? rural goes you

No.

Considine if fairly -- and very concerns I you to has. the do And that be choppy, it's in what to something but think the outcome spoken but me. that have voters know Mrs. could want said, I to partners think event any -- clear is

If issue. want important does of me, you enforce going more that not that going I the a and that's we're And their set concern we're price rents collection. that to think much something legislation to says it's

Stevenson question with our And Rob next today comes Janney. from

and utility, maybe given than expense operating staying or costs today April about thinking higher going how How but operating You're were? everyone higher all that numbers, home to should probably expenses. you've some other with turnover and be be does but offset the Keith, insurance, they rent lines, COVID expenses? what and are extra expenses we at and saving occupancy lower

of lot that and a in minuses there's listen, are Rob, pluses there.

more some activities supplies that turnover people on we're And listen, things might and We're and side, there. lower and on staying expenses imagine. money cleaning certainly like turnover. saving more is that is, cleaning So you that spending the the on

on the came were much insurance So where other look it. pretty when at it April, pieces? and particularly would would on how you we performance planned taxes, through and what Paul, our add hoping through, we

compounded And what past on expenses have And expenses. you also years, being big operating I'd controllable operating long the but disciplined with record pieces, very Aimco's in the Rob, over point of Yes. rate. negative our at is those a our picture, to track XX

And so that of discipline because going is to not disappear COVID.

we as to As as work can that costs. Keith increases certain others. you rest some mentioned, check. going expenses assure we operating in in decreases in hard keep we're have We'll might have to But can

Okay.

not When delinquencies debt peak did out? Second on where of final terms rent that on paying is and was the it But talking talked Presumably, and delinquencies. in size? you're problem the about extended big the look eviction back question other that people financial California, place bad Seattle, you're in And that York then of seeing this crisis, New at collectibility how also, where there's you global what rate rules. could? any you a

correct if address to me. happen and those. miss I'll interject Rob, And I please anything,

we tell I collection we our bring up of only percentages you because April, what our XX% on very in debt So X%. recognize bad although you a would expense rents of point delinquencies, collected good and

going what a that And that percentage our of means likely happen decent be in just April. collect. expect we that by what will is to is is X% to after Now periods residents paid

history. we back the of any And March, was so of as April, about paid was recent on as March AR time month time unpaid of our which challenging about during in probably looking XX% had a

X% ultimately, we'll unpaid amounts that deposits. cash recognized collect security that's renter. some we'll collect bad the and are We'll by the of directly debt. some accrued, in some as have And so that's And secured from

We expect X%. be to that

rules rent, to not not with the regulations challenges pay eviction. have to compelled that either local and pay and some We the been forward place, or being correlate, are put force Aimco do the because of are trying process situations and financial collection identical. of use who, them to have great crisis dealing to cannot individuals in Looking through

four has we're going is average And we'll so resident high to and around balance four of of good quarters, over credits. the little high to probably bit for for see benefit quarters they're the the our higher that incomes carry have have past a $XXX,XXX AR. incomes median I scores, base what credit But that that averaged think be past $XXX,XXX that very averaged going

a if that at see to of great over or see. rate we we'll peaked the to But if XXX increases. X% have bad that wait frame the sticks We'll points reference as at basis crisis, and just financial So time. debt

delinquencies whole they problem they and rent not paying Seattle, how big your is And than and the could? substantially in people maybe today? York the And that Okay. a California higher are portfolio a New as of

I'll Keith. is running -- This take about L.A. is XX%. piece the

XX% So XX% entertainment that about that types well when is course, think government challenges have of are L.A. combination about different you as you and the meddling of running as of more a there. you industries collectivity, have and, some

recover have or day, But of we to it type we'll it's that now, some So the having at the credits, the seen. challenges able point. end do to of and range are we've that at customers they're good in collections believe means if be the people the -- of those

on Seattle liquidity you Street That's I to those loan Rob, to to or And it's borrow we investment know, would exposure an people whom much them. behavior. REIT because know bad of it's inconsequential. who a think to York. balance interest-free sheet talked have Yes. don't wise of just I have the kind and Both Wall are add. New

We percent bigger that's the to that is California allocated a that's -- to to And be And portfolio particularly Southern California. where in have going California. an X% really across California, big exposure a issue. Southern and to

question Associates. Hardik next Zelman our And Goel comes & from today with

want to are made. little guess It's But couple beat Parkmerced. investment a about broader. I is talked question my because a how horse other allocation decisions analysts about capital of don't dead a and I already

peers now, right you have assets and they we day are environment. guys X% mean on invested I yield this earning cash preferred, invested getting So -- during than less X, whereas in XX% your cash a X deals

were you the MAB that don't confident how is that's was XX% think being or Is is the we person? process guys that flows is straight ways the to -- made And reflected Francisco. that being they disagree Is pretty has I not, this a at Just kind cash nobody true on future the with things? I marketed a into lender. saying, implies of flow from it And yield, XX% it. mean, I investment much Because What's and committee? how of it been I that other internally know but in anywhere. mean, invest an investment wondering -- deal deal it person these like? to allowed to which not San like it's the X decision there's write-down the heard is And that entire AFFO.

So your on comments that. just

funding return, own being whether not, any a REIT probably The taking money their interest they're position first or a it's that lender, is prefunding back, cash and when comment fungible. is

and it's cash back paid to So have to cash. easy it advance

a opportunities and us, look to them So and them we brought The weight lot of on as process we a team. don't I put are at that. that look inside is at

internal have committee process, And We external process. rigorous. an have board is committee investment we an which investment

a people to depends going of lots have the was risk what at hands apples interested the XX%, certainly to we case of of of comparing in going business We XX%, great at see optionality there's our XX% bananas in at So forward owning it because inputs. provided it, lots on have And who be in XX% versus the but on we're XX% what did gained of free. is versus XX%. for essentially the offer of position really what was

me Board And Chair Internal is Committee? really could I move Investment you That's this helpful. the color -- some of Investment and I give the additional the on also can Committee up. guess, Who

John Mike and Bezzant Stein.

today And our of comes question next SMBC. Anderson Rich

existing have leasing don't I if had get First an to past. evolved. into me just of of how virtual guys technologies as make question of type you to but the am stuff. all, right the of of I is, self-guided you've and technologies I'm wrong, work? all, Terry the of by first you been Keith, I'd like said tour with some face-timing been success about a like finding having But second all or that? has some some think know success together you that process big idea And sort scrapping correct made I sort in push

iPhones. actually which years thanks for I started self-guided and tours -- we Rich, the audibly did we question. them X ago actually through

what found so there doing have done to for And ways the that been we And those we past is it. be through actually more X effective years. we've was different

energy was team I'd focus is, the put around past to where we the is that living in. our you unit years, members how the a And team at of to way finding be have our a be so someone was for day, pre-leasing see. would of that on training our And couldn't that end couple And that them that what was better to people to and for they to able had rent commit is something apartments, sell at activities.

technology today, technologies So it improve did place. in that what in we human the was, team said had things went which and of now did Think have we happening which that don't then upon our to are to we without it. we existing that and is how members, that like can in we locks having that, take people to interaction. is what move-ins and took or existing keys have And occur we can have we as SmartRent

existing going And what go do. home, residents so went actually members the when done We've said, before, apartments take basically we self-guided We've going in did their of technology. to pre-leasing. to here's existing things we're while we go to we're done in our view tour like sheltered team help be going to towards comfort able and that. We're and and FaceTime tours place, and

today. situation current we've -- priority tours this doing were just it of it the We were one made so of of some just the every our already made done So how before. that we

Okay.

And interest given the lot, was wondering, how customer Okay. or the renewal future offering increase is and rent activity guys about rents of is and a environment depending you circumstances increased on rents Fair And in raising being then which your of all enough. some your made policy might and rents satisfaction, residents. a fall tenancy. received in the comment about zero that. so talk I'm of peers where fact by to that to have the some the this gone light something on

well. sort to that on as view of wanted get your Just

again. approach it's think can't just walk the others Rich, how what you we about speak these Thanks things. Well, But I'll it. how Keith I question. for about through

First, we pricing don't ever a way. approach blanket in our

example. -- zero a there just let me and while being be go me let easily simple, believe couple to give is give be could And you that way So you we very an a out going to be important. we're -- particular

an have the in is has of feeling So would we different stresses to that if are we're price property travel that is more impacted and a property that that things we property industry that and way. a in close COVID, and Nashville, residents Tennessee industry, hospitality by that like the

a about raise units. comfortable and people put those choices demand property that's hiring residents by we how incomes this. are But in a because near in increasing to is make even climbing. folks. and are They're who which marketplace different that -- their that Maybe now a Facebook, job a at be off property rents we unaffected this those fact would we those And Their there's Northern not flat in want shift rents like are the actually quite on California, renewals. by we let's

one over we by forward. by property, by unit a that way it, we approach blanket make we and property we throw the how it that's geography data analytics by the team will So not and individual to that's the one decisions, and have how and approach going unit, operations everything, and geography, is to

that phrase feel yes curious that I sneak doing That's an X no using those familiar used Terry, or at Aimco over the resident can And all any term? you any that a to or if be you the to term very I'm zone. in. if was me chance a are it REIT's sheet long role, way helpful. of have question people balance

No.

nonrenewal, to in Although, legislative have begin where hands tied. states for may they prescribed be standards our Rich, actually

do I'm talking to decision about that. individuals

won't But that is morally more the Aimco a no, it things It's something long like behavior. we bad wrong. as becomes behaviors as allow that's if far term. crisis. concerned, you'll after or bad common, see And S&L it's boy And tolerate emerged it it

And America. Spector our next from of Bank with comes question Jeff

Askarbek Jeff This for today. is Alua actually

Just wondering to going back collection.

been color difference on So classes. collecting? be is in you guys has there that that A can different talk asset collections And a mostly about Or any the would great.

seen is see. impactful what This we it, it. think Keith. I'll as at been we have you mostly really look jobs through is we that that we've When walk

XX% that, where impact. places medical self-employed, really professional, those have look industry, collections we most hospitality, That are pressure population, when the entertainment our at you the the those are only cohort stresses. professions, of felt engineers, represents resident and have the So little have Those in that been that's is we reflective of like things see. accountants, very that the that XX% maybe so ones had technology

And then just... also

Bs. just down a had And is on say it You to would comes I question that just what versus As really jobs.

price you B. are day, the those of influenced cohort So end A at than points particular the in a job more by that can have

driving necessarily through that Bs job impactful. have been So the As the force that we've cohorts aren't more seen and

just it quick That's me. for one -- then question it. Got okay. on And

And Nick from Yulico comes Scotiabank. our with question next

in Sumit is Nick. This for Sharma

Terry, makes couple hear I I cash It flow a on understand your Parkmerced an from questions. in impairment One, trying just prepared to correctly funding happened about the of you loan point own did a And what sense. your So your that remarks? took perspective. understand return.

give you of operating assumptions. mentioned was into there -- you some whether could us it's insight underwriting at XX% So

ago spend than taken should lower cash CapEx or questions guess, delay was be some loan I few have there much rate that, -- off? could Was anticipated fine. flow that's some the a the larger asked normalized that than So actually what being a

recognize today. think was owe is it the by accounting a where ourselves. do example piece the if And think picture accrued way years time. to give secured and zero that debt that we Aimco inside big B we over it X that right that over loan on a for and is I ratably own to an We collateral, we about had you I'll to good that

collectible normal that's accrue we that which loan, be the -- interest. the our of maturity payable that's the would And and for accounting at income, correct of so part

So to will this not all a income lost currently up not right is to fair case, million maturity. is when be particular comes that's what way collectibility. that accrue it or question. question very the -- the recognize turns In over, if it we're equity paid of paid on at $XXX there's And

And subjectivity number could that it. of That's so a that's We to But quite a has it's change. elements number it. with that our business. feel comfortable

to an second the QX. CapEx too shed the unanticipated spend to there property thing understand terms I on you more this was early Maybe the I'm do point sense all related complete And whether coupon that C&D around some light it's Or zero -- something the kind of get mean, No. time. of and development a the growth? all -- funding I little or REITs in in the bond about NOI can to ask? same... on performance the trying just mortgage loan maybe

ability -- just decisions. the it really and NOI parts on some days ask. We purposes. spend too They too days approval It's are their of ago, But early. early closed of to XXX a right broadly, of there has constraints review to John don't it's on XX ago.

well growth up five that -- have to the of help creditor terms limitations you the that follow-up, the construction in the there which and yes. through years? of that leasing really lines as you Actually, are funds disbursement Actually, is, or any milestones control to

virtually. happy have right John I'd just here speak He's to be to that.

you the for Sumit, Yes. thank questions.

think I lender in earlier, one keep here. Terry are and we mind, thing to it a said

the not That's and operator. are We foremost. first

what of been quarter spend first we the no for what underwrote, of other is at large no and been we line we There's the underwrote how with look what kind have underwrote. out that XX% CapEx, they of the has of As or that performed. we ordinary operations out

As basically provides in we Is at flow your we and controls at the responsive service the that the flow to that property cash flows we debt. have future, look all question? there, that cash look Aimco to excess our to right, deal from the

broader I tell one the you of much your in Yes. I'll CapEx. terms other bit Parc guess I performance, and only sorry, Yes. you It's -- clarification in look the for can the gears understand unexpected us development, so about Mosaic of point there's property there thank that lease. your the that shift XX% the resume in wasn't any release. at parks a but

on units I heard that the earlier about saying lease. there XX I think that left are call you there's to

concessions? a in mean, sense the $X,XXX moving environment what few range Just in the properties? rent trying $X,XXX? Or is at you more are at. it of many you of to of a going are lease-up on the get of terms in the these challenging is What I looking to

is This Keith. take I'll it.

we're Boulder, And up of here. COVID popping comes have across is generally portfolio, right right? factor rents and is the is is that it off. was What sight you -- about through of Mosaic uptick pre-leased, over with always project being that been looked spring the it Our we're finishing I seeing upticks we're described beautiful very our that a is weather as as before, I Parc And with is course, X that environment. tell now that coming past the The our first there's types dealing as of the is expectation X on pieces just weeks. we're The that is picking would things and plan. And that. that unseen the optimistic there's about several just

Keith. don't including by market going the higher And changes going would enrolled just will to number of -- don't person. -- And it be this flatter Parc of mentioned in think decision didn't I these on. again to students our otherwise. wildcard not And a just being But add to of income, that's I have Penn, that If that. don't Square, I fall. But students answer where is it in to don't where open, the a be that, it be of I the our true is than university target general they've is whether if and MIT would the severity had university the in to customer -- we this we're made we cases, in know I not or yet. That's -- fact There customer. Kendall generally, at Mosaic the be don't because target that influenced Mosaic it's think softer eds because -- so Parc the and what areas recession of Philadelphia next say. even including or They're in number a so and meds. affecting case older for a expensive we a not to if they too is -- the could

question Street comes John from with Green And our Pawlowski next Advisors.

start the update that pushed. on to us of was That an the you're involved get will supposed you Obviously, Phase it could likely this Parkmerced John, terms give not year. in development of in? X

So just where earliest -- ground? when the could or when -- X at give a at involved break Aimco those Phase the us at down is X minimum a through sense earliest, break for when

question. for thanks John, the Well,

break time. -- time to when the set point X at Phase a think will in frame is optimistic I this for

and to I through get think on right got this get of X, we've that's to going be level able now. we've to through Phase got disruption

phase X, of they I the ago. were in hired to X Xa larger other a in phases the within X, be -- weeds They and away On the Francisco phases. Phase the want build determine. too to status going minimum timing some or going so years in to into subdivision to track Xa to Xb Phase a very, it's They Phase start requirement for Xb X a initial to that have land A Phase X-year their is next that are starts for but let's starts their would process, and got the on Phase are able in Phase they don't days. is, to -- Xa, San what buildings went As early to in buildings. Xa logical range. going be have get gets very is priced year the pricing the Phase process and design If to to the through Xb. behind process, into far build engineering -- expect pricing right split parcels end out. XX for next through that which June Xb, had they've through phase, for designed Phase Phase a they They now and that early are that value XX Phase X able architects design of take from the say, year, by is and somewhere for

coming Maximus we project. like enter capital on look -- Okay. in where well That's helpful. do if say what And your remedies remedies then What mid-March your can like markets looks Or in it coming those you default? environment like them lock do up by help needs we tell secured us most the economy the lock months, understand the an me you're loan? months again? the more likely scenario up what just Is to support and another and if Aimco to the would reasonable starts the

update -- on on us with paid had that made what their is. reported the to on. payments and have on, have at when flow going cash on was based April on there's X, be they not is -- situation just people what we not a May situation have This to They to things be us. specific and requests say, a servicing. crisis some loan. What They're paid because going our not, make stretch. loan. I to we point what's any They're from off, been clear, -- that And going by reasonable excess the March was forbearance calls default senior There in in XX on special the perspective, it's other time I very in on guess, call them would XX be versus John, have first was versus certainly

I looks ultimately -- remarkably wasn't percentage asset. a and Our judicial April -- out on position are. Everybody is to May, will And we foreclosure like is call ago at, process normal the in primary And first situation That they're ago X effective as lean remedy an concerned what that a ultimate lender that's based with scenario, did collections May the of where think puts rent UCC of available that April foreclosure is foreclosure. X weeks mezz weeks place a bad. on a the remedy was ownership process. the Again, and them -- X, about into us that knew. outside but worst-case nobody updates assess the and judiciary we takes was But their on there us. that

just And to how things so we play see have out.

This question-and-answer to conference like concludes the I'd the to back turn session. final over for remarks. the any team management

And you on you Aimco. refreshing been for for a I or X a you many Be month know the call I in you, all weekend. a maybe thank week, it's of wish your and Rocco, long interest Thank weeks. and long long well. restful of

you Thank all Thank you, attending today's for presentation. today's concludes conference This sir. call.

have your disconnect may day. wonderful a lines, You and